Mano Update on its Diamond Exploration and Production Plans

Mano Update on its Diamond Exploration and Production Plans

Joint Venture project with Petra Diamonds in Kono nearing diamond production from kimberlite dykes. Macrodiamonds recovered from small samples during commissioning of the plant

Joint Venture with BHP Billiton in Sierra Leone continues to yield encouraging positive results and follow up has commenced in five areas.

Guinea

Joint Venture Agreement signed with SearchGold Resources over Mandala Alluvial and Bouro Kimberlite Project with objective of alluvial diamond production by end 2006, followed by kimberlite bulk sampling in 2007 to establish the economics of an underground diamond mine.

Liberia

Drilling and sampling of diamondiferous pipes at Weasua commenced in Joint Venture with Trans Hex Group.

Detailed Airborne and ground magnetic surveys, reconnaissance and follow-up sampling and drilling of kimberlites continuing in the 15,000km2 Mineral Cooperation Agreement (MCA) Licence. Three kimberlites discovered to date with many new anomalies generated.

Mano River Resources Inc (‘Mano’) wishes to provide the following update on its diamond activities.

Sierra Leone Projects

Kono
Mano’s Joint Venture with Petra Diamonds in the Kono district of Sierra Leone is progressing well and initial diamond production from test mining is expected in June 2006. The DMS processing plant is installed and is currently being commissioned. Macro diamonds have been recovered from small sample lots at the Lion 2 and Lion 3 kimberlite dykes, whilst 6 macrodiamonds, totalling approximately 1 carat, have been recovered from the site selected for the intrusion point at Lion 5 dyke. Construction of associated camp, plant and other infrastructure has also been completed. Shaft sinking has commenced in two separate areas of the Lion-3 and Lion-5 dykes, with a third area on Lion-2 being investigated for the suitability for the sinking of a shaft. Each shaft will be sunk to a depth of 30m before tunnels are driven along strike within the kimberlite dykes to recover in the order of 10,000 tonnes of kimberlite from each shaft site. These bulk samples will be hauled a maximum of 3 to 5km to the plant site and processed in separate batches so that grades and diamond values for each kimberlite dyke can be established to prioritise the order of full scale mining of the dykes. Petra has now invested the $3 million needed to earn a 51% equity interest in the property and the partners will share ongoing investment pro-rata.

BHP Billiton Joint Venture
Reconnaissance sampling of the 9,700km2 licence area in the east of Sierra Leone has identified five discrete areas anomalous in kimberlite indicator minerals. Follow up sampling has been completed in all of these areas, though results are currently available for only three. One particular area that has yielded abundant G10 garnets has been subjected to detailed soil sampling and ground magnetics, with ground electro-magnetic surveys scheduled to commence in May. The Joint Venture will retain the five anomalous areas and relinquish over 90% of the large reconnaissance licence in May. These five areas will be the focus of future follow-up work. BHP Billiton is currently sole funding a $3.4 million programme to earn a 51% equity interest in the property.

Guinea Project

Mandala / Bouro
Mano recently signed a joint venture agreement with SearchGold Resources (“Search”) of Canada whereby Search and Mano combine into a company called Guinea Diamond Corporation their respective alluvial diamond and kimberlite diamond projects in the Mandala / Bouro region of southeast Guinea. The Mandala project has a measured resource of 330,200 carats and an indicated diamond resource of 204,962 carats, as established by consultant geologist Peter Walter in a 43-101 filed report (reference SearchGold announcement on SEDAR http://www.searchgold.ca/mp/pdf/Mandala-Ouria_report_Aug_2004.pdf). It is the objective of the Joint Venture to establish alluvial diamond production by the end of 2006, with initial production of 5,000 carats per month envisaged. A suitable rotary pan and DMS plant is being investigated and it is hoped that this can be finalised and shipped to Guinea in the near future. Advertisements for a qualified, experienced project manager have been placed and the incumbent will be hired and relocated to Guinea to oversee the establishment and commissioning of the operation. When the alluvial diamond facility is operating, the high-grade kimberlite dykes will be bulk sampled with a view to establishing the diamond grades and values. Previous exploration by De Beers, and Mano’s own exploration work, indicates that the Bouro North dyke has a macrodiamond grade of between 180 and 500cpht. It is thought that the kimberlites of the Joint Venture represent longer-term, sustainable diamond production potential.

Liberia Projects

Weasua Kimberlite Project
The Weasua kimberlite project is a Joint Venture with Trans Hex Group of South Africa. Trans Hex is currently spending $2million to earn a 50% equity interest the project. To date, some six kimberlite pipes have been discovered, five of which are confirmed as diamondiferous. Detailed soil sampling, ground magnetics and gravity and delineation pitting has been conducted since resumption of exploration in 2005. The two largest pipes are K002 and K003, at just under 7 hectares and 4 hectares respectively, have been mined at surface by artisanal diamond miners for some time. A 3,000m core-drilling programme has recently commenced on pipes K001, K002, K003 and K007 with the objectives of delineating the pipes at depth as well as providing approximately 20-tonnes of fresh kimberlite samples for micro- and macro-diamond recovery. Subject to encouraging results, a larger diameter drilling and surface bulk-sampling programme will be conducted to establish the macro-diamond grade and value of these pipes.

Mineral Cooperation Agreement (“MCA”)
The 70:30 contributory Joint Venture between Mano and the Government of Liberia continues to yield exciting results. Three kimberlites have been discovered to date, the first of which, designated Alpha-1, has proven diamondiferous (Alpha-2 and 3 have not yet been tested). Detailed soil sampling, ground magnetic and gravity surveys have been completed over many anomalous areas and the kimberlites, with numerous targets being generated. Core drilling of the Alpha-1, 2 and 3 kimberlites has commenced and Alpha-1 has been confirmed as a small pipe with associated dyke system. Recently, a 3,000-line km detailed airborne heli-mag geophysical survey was flown over the most anomalous areas of the MCA. Data is currently being processed and interpreted.

Reconnaissance sampling has progressed throughout the wider 15,000km2 MCA area in western Liberia. This prime area of Archaean Craton has never been subjected to detailed diamond exploration in the past, even though there are many areas of artisanal diamond mining activity that suggest the presence of diamond-bearing kimberlites. The samples collected are being processed in Mano’s recently established diamond laboratory in Monrovia.

African Aura Joint Venture
In 2005, Mano established a Joint Venture with private junior gold exploration company African Aura Resources Ltd (“AAR”). Mano has the right to earn a 78% interest in the diamond rights of the 400km2 AAR property through funding a feasibility study on one or more diamondiferous kimberlites considered to have economic potential. Mano has recently completed reconnaissance sampling on the property and has identified a number of high interest indicator mineral anomalies for follow up work. Some of these anomalies are located near the diamond mining village of Camp Israel, which has long been the focus of intensive alluvial artisanal diamond mining.

Bea Mountains Mineral Development Agreement (‘MDA’)
In 2000/2001 Mano undertook limited diamond reconnaissance sampling on its ‘Bea Mountain’ MDA (1000km2) licence, which returned abundant positive samples in a number of areas, some associated with artisanal diamond workings. The recent detailed airborne magnetic survey flown to identify gold belt extensions will also be interpreted for the presence of kimberlite pipes that could be the source(s) for some of the indicator mineral anomalies.

Corporate Restructuring

Mano River Resources Inc. (“Mano”) is pleased to announce that it has completed an internal reorganisation of its subsidiary companies holding its various exploration and mining licences in Sierra Leone, Guinea and Liberia. The purpose of this exercise was to simplify the internal legal structure of Mano and its holding companies, in order to facilitate a split of diamond and non-diamond assets at any point in time in the future, should Mano wish to do so.

Mano’s Vice President of Exploration for Diamonds, Karl Smithson, comments: “Mano has an exceptional diamond portfolio, ranging from projects that have imminent diamond production and cash flow through to near-term diamond production, advanced bulk sampling, follow up and reconnaissance blue sky, in perhaps one of the most prospective diamond regions of the world. We have attracted high calibre Joint Venture partners such as BHP Billiton, Petra Diamonds, Trans Hex Group and SearchGold that can bring production and mining expertise, as well as the finance to advance these projects. Furthermore, in our large MCA licence in Western Liberia, the Company has secured highly prospective diamond ground within the Man Craton. Mano will in the near future become a producer as well as an explorer of high quality diamonds, which is just reward for our years of commitment and sustained effort in the Mano River Union countries.”

About Mano River Resources
Mano is an exploration company focused on the discovery of diamond, gold and iron ore deposits in the Archaean terrain of the highly prospective, under-explored, West African Mano River Union countries of Liberia, Sierra Leone, and Guinea. Mano considers that the region has the potential to further develop into a world-class diamond and gold mining province. The Company presently has some 25,000km2 under mineral licence, promising gold prospects in all three countries, certainly one and possibly a second cluster of diamondiferous pipes in Liberia, and joint ventures in place with BHP-Billiton, Golden Star Resources, Navasota, Petra Diamonds, Searchgold and Trans Hex Group.

For further information on Mano River Resources and its exploration programme, you are invited to visit the Company’s website at www.manoriver.com or contact one of the following: